Five Lordstown insiders, including the president and former CFO, sold shares in early February when the stock was trading in the mid $20 range
Lordstown President Rich Schmidt previously said purchase agreements for its Endurance pickup truck were firm commitments.
Lordstown Motors president Rich Schmidt says the company is focusing on its Endurance Truck, raising funds, and reconfirming orders.
The company issued a going-concern notice last week, saying it did not have enough cash to start commercial production of its vehicles.
Shares of the electric-vehicle maker have now lost about half their value since the beginning of the year.
"Our current level of cash and cash equivalents are not sufficient to fund commercial scale production," warned Lordstown Motors to investors.
Lordstown Motors raised $675 million by going public through a reverse merger in late 2020 that valued it at roughly $1.6 billion.
Lordstown forecast that production of its Endurance truck this year would be "at best" 50% of its previous expectations.
Since Monday, shares of Fisker, Nikola, and Canoo were up as much as 20%, 17%, and 8%, respectively.
The questionable practice underscores that using pre-orders as a proxy for sales may not be the best way to evaluate aspiring automakers.
Goldman is concerned that the prospects of these electric-vehicle startups could be dented by inroads from General Motors, Ford, and Apple.
Short-seller Hindenburg Research accused the EV startup of misrepresenting its preorders and exaggerating the progress made on its debut pickup.
Lordstown Motors boss Steve Burns quoted Taylor Swift when responding to a short-seller's fraud accusations on Monday.
Hindenburg Research alleged that Lordstown's 100,000 preorders are "largely fictitious." Shares of the EV maker plummeted nearly 20% on the news.
Electric truck maker Lordstown Motors dropped 23% after Hindenburg Research revealed a short position in the company that has "misled investors."
Shares of American EV manufacturers are roaring higher on Tuesday after President Biden announced the federal fleet is going electric. Shares of Workhorse Group, Nikola, and Lordstown Motors all jumped double digits after the news broke. The US federal fleet is made up of 645,000 vehicles which cost taxpayers some […]
Lordstown Motors and Camping World are partnering to create batteries to electrify RVs with the goal of eventually introducing a fully electric RV. The eRV will be affordable, especially for millennials, which Camping World chairman and CEO Marcus Lemonis called the future of the RV industry during the joint press […]